A RAG framework for rating in-house team risk

If this rings true we think People Risk should now be on your Risk Register. So how to rank this risk?

Across Law Debenture (both Trustee and Pegasus businesses) we’ve found a simple Red-Amber-Green framework can be a helpful starting point:

Which statement do you think best characterises your own in-house pension team/situation:-

Green = In-house functions currently appear resilient.

Amber = In-house functions strained with increased (or increasing) risk.

Red = In-house functions not coping and/or significant risks.

There’s a bit more behind this, described in the table:-

A Simple Framework to RAG Rate the People Risk in Your In-House Pension Team.

RAG status

‘Simple’ statement

More detail

Green

In-house functions currently appear resilient.

Low Risk.  Well resourced, working well, clear forward planning. Deadlines being met with quality output.  Advisers being well managed. Resilient to some churn, may include contingency facility. 

Amber

In-house functions strained with increased (or increasing) risk.

People risk now bubbling, with potential to become elevated.  Deadlines and quality of delivery/papers under strain.  Staff and resourcing model under pressure. Increasing reliance on consultants for support.  Prone to (further?) churn.  Operating model may need (re-) visiting  

Red

In-house functions not coping and/or significant risks. 

People/Resourcing risk now realised.  Facing visible difficulty in delivering ‘lights-on’ BAU activity.  Potential regulatory pressure.  Key initiatives (like necessary projects) have stalled.  Call to action.

What can you do about this risk?

To help schemes with bubbling or elevated People Risk, Pegasus offers a range of possible solutions, as follows:

  1. Contingency
  2. Modular
  3. Full out-source
  4. Out-source with staff transfer

Again I reference my prior blog for a way to manage these risks which we do see bubbling - we get approached a fair bit now with concerned pensions executives, looking to extend their careers.  If you’re experiencing staff churn or having to manage imminent retirement of your most senior/experienced people, please get in touch.  There is a way through.  

Ian McKinlay writes a regular blog series, do reach out to Ian, or the wider Pegasus team for any further information.

Meet our Pegasus Leadership

Profile image for Sankar Mahalingham

Sankar Mahalingham

Managing Director, Pensions

London, UK

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Profile image for Ian McKinlay

Ian McKinlay

Director

London, UK

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Profile image for Scott Pinder

Scott Pinder

Head of Corporate Sole Trustee

London, UK

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